1mg Technologies to raise $10 million in equity financing

1mg Technologies, the online healthcare pharmacy, is reportedly close to finalising a $10-million equity financing round. The funding round is being led by its existing investors that includes Sequoia Capital and HBM Healthcare Investments.

Last year, the Gurugram-based company raised an undisclosed sum from global healthcare-focused fund HBM Healthcare. That round was preceded by a Rs 100-crore capital injection by Maverick Capital Ventures in April last year.

Along with Sequoia and HMB Healthcare, the latest round will also see participation from Omidyar Network and Maverick Capital Ventures. It is not yet known if Intel Capital and Deep Kalra, chief executive of MakeMyTrip, who are also early backers of 1mg, will participate in this round or not.

1mg started off as an online marketplace for generic drugs. It was rebranded and spun off from healthcare startup Healthkart last year. It had raised $6 million in Series A from a group of investors.

Healthkart is now owned and operated by Bright Lifecare, and focuses primarily on the fitness and nutrition segments, continues to be run by Sameer Maheshwari, who had co-founded the company with Tandon in 2011.

The pharmacy, available on web and mobile, also provides a platform diagnostics services to consumers. The company, which is led by Healthkart founder Prashant Tandon, competes with the likes of Netmeds and Practo Technologies, across segments.

In October last year, healthcare-focused mid-stage private equity firm OrbiMed led a $50-million round of funding in Chennai-based online pharmacy marketplace Netmeds.com.

1mg Technologies has also acquired a few companies in the recent years. By acquiring Medd, 1mg forayed into the diagnostics segment, and with the acquisition of MediAngels, it is looking to enter into the B2B segment.

With a presence in online doctor consultations, e-pharmacy and diagnostics space, 1mg will now compete with many different players, the most prominent ones being Practo.